Add training workflow, datasets, and runbook

training_data/relevant/text/a1feeaf76b104f61748c439d00c1732a3b92c130c31f30c47f81dd61db20fd0d.txt

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+example, this 1:2 contract backspread has a delta of −0.02 and a gamma of
++0.05. Fewer than 10 deltas could be scalped if the stock moves up and
+down by one point. It becomes a more practical trade as the position size
+increases. Of course, more practical doesn’t necessarily guarantee it will be
+more profitable. The market must cooperate!
+Backspread Example
+Let’s say a 20:40 contract backspread is traded. (Note : In trader lingo this is
+still called a one-by-two; it is just traded 20 times.) The spread price is still
+1.00 credit per contract; in this case, that’s $2,000. But with this type of
+trade, the spread price is not the best measure of risk or reward, as it is with
+some other kinds of spreads. Risk and reward are best measured by delta,
+gamma, theta, and vega. Exhibit 16.2 shows this trade’s greeks.
+EXHIBIT 16.2 Greeks for 20:40 backspread with the underlying at $71.
+Backspreads are volatility plays. This spread has a +1.07 vega with the
+stock at $71. It is, therefore, a bullish implied volatility (IV) play. The IV of
+the long calls, the 75s, is 30 percent, and that of the 70s is 32 percent. Much
+as with any other volatility trade, traders would compare current implied
+volatility with realized volatility and the implied volatility of recent past
+and consider any catalysts that might affect stock volatility. The objective is
+to buy an IV that is lower than the expected future stock volatility, based on
+all available data. The focus of traders of this backspread is not the dollar
+credit earned. They are more interested in buying a 30 volatility—that’s the
+focus.
+But the 75 calls’ IV is not the only volatility figure to consider. The short
+options, the 70s, have implied volatility of 32 percent. Because of their